Coronavirus outbreak has practically pushed the global economy to a standstill and India is no exception to it.
The central government is reeling through a dual-challenge. On one hand, it is trying to contain the COVID-19 outbreak, while on the other it is managing the fund allocation, ensure that the benefit reaches the end, amid falling revenues due to the lockdown.
To sail through the situation, the Finance Ministry on Friday, June 5, announced that no new government schemes will start for a year except for the special relief packages announced by the Prime Minister and Finance Minister Nirmala Sitharaman last month.
Government has prioritised the Prime Minister Gareeb Kalyan Package and the Atmanirbhar Bharat Abhiyan to be the only two schemes in function till March next year.
"No New Scheme/Sub Scheme, whether under delegate power to ministry including SFC proposals or through EFC should be initiated in 2020-21 except proposal announced under PM Gareeb Kalyan Package, Aatma Nirbhar Bharat Abhiyan Package and any other special packages," the Finance Ministry said in a statement.
"In-principle approval for such schemes will not be given this financial year. Initiation of new schemes already appraised/approved will remain suspended for one year till march 31, 2021 or till further orders whichever is earlier," it said.
Centre has also decided to stop the launch of any new scheme worth up to Rs 500 crore, till March 2021. Additionally, the ministries have been stopped from sending requests for new schemes to the finance ministry.
The schemes already approved under the Union Budget will also remain suspended till March 31.
In its statement, the ministry said that in the wake of the COVID-19 pandemic, there is 'an unprecedented demand on public financial resources' and thus the resources need to be prudently utilised according to the emerging and changing priorities.